Obama says US can't afford more showdowns over debt, deficits

US President Barack Obama delivers remarks next to Vice-President Joe Biden (left) after the House of Representatives acted on legislation intended to avoid the "fiscal cliff," at the White House in Washington on Jan 1, 2013. Mr Obama warned today that the United States could not afford further budget showdowns this year or in the future. -- PHOTO: REUTERS

HONOLULU (REUTERS) - Fresh from the long legislative fight to prevent a "fiscal cliff" of tax hikes and spending cuts, President Barack Obama warned today that the United States could not afford further budget showdowns this year or in the future.

Mr Obama, who returned to Hawaii for a family vacation shortly after the House of Representatives passed a compromise bill on Tuesday, said in his weekly radio and Internet address that the new law was just one step toward fixing the country's fiscal and economic problems.

"We still need to do more to put Americans back to work while also putting this country on a path to pay down its debt, and our economy can't afford more protracted showdowns or manufactured crises along the way," he said in the address, broadcast today.

"Because even as our businesses created 2 million new jobs last year - including 168,000 new jobs last month - the messy brinkmanship in Congress made business owners more uncertain and consumers less confident." Government data released on Friday showed the US unemployment rate remained at 7.8 per cent in December.